Estee Lauder Q4 profit beats on cost cuts, operational efficiencies
Estee Lauder Q4 profit beats on cost cuts, operational efficiencies
Overview
US beauty products maker's Q4 net sales rose 6%, beating analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Company completed restructuring program, reducing 10,000 positions for operational efficiency
Outlook
Estee Lauder affirms fiscal 2027 organic net sales growth outlook of 3% to 5%
Company raises fiscal 2027 adjusted operating margin outlook to 12.7% to 13.5%
Company expects majority of PRGP benefits to be realized in fiscal 2027
Result Drivers
PRGP OPERATIONAL EFFICIENCIES - Co said margin expansion and improved profitability were driven by operational efficiencies and cost reductions under its Profit Recovery and Growth Plan
CONSUMER-FACING INVESTMENTS - Increased spending on advertising, promotions and store operations supported sales growth and key product launches
PRODUCT INNOVATION AND EXPANDED REACH - Growth in skin care and fragrance was driven by new product launches, targeted expansion of consumer reach, and strong performance during key shopping moments
Company press release: ID:nBw92kgBVa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Net Sales | Beat | $3.63 bln | $3.54 bln (19 Analysts) |
Q4 Adjusted EPS | Beat | $0.39 | $0.32 (21 Analysts) |
Q4 Loss Per Share |
| $0.32 |
|
Q4 Net Loss |
| $116 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the personal products peer group is "hold."
Wall Street's median 12-month price target for Estee Lauder Companies Inc is $90.00, about 6.8% above its August 18 closing price of $84.27
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 27 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)